Enbridge Energy Partners L.P. (EEP) and Enbridge Income Fund (ENF), affiliates of Enbridge Inc. (collectively "Enbridge"), on Thursday launched a binding open season to solicit additional shipper interest in the Bakken Expansion Program, a series of projects to expand crude oil pipeline capacity in North Dakota and Saskatchewan. These proposed projects, will provide incremental capacity to meet the crude oil transportation needs of Williston Basin producers.
"The Bakken and Three Forks formations in the Williston Basin are expected to be significant long-term sources of crude oil production growth," said Stephen J. Wuori, Executive Vice President, Liquids Pipelines, Enbridge Inc. "The Enbridge system provides a low cost solution for shippers to access prime U.S. markets including the Great Lakes region of the Upper Midwest and the Midcontinent refinery markets connected to Cushing, Oklahoma. Our ability to provide segregated service also ensures that producers maximize the netback from their high quality, light sweet Bakken crude oil production. Finally, the integration of the Bakken Expansion Program with the Enbridge mainline will provide long-term guaranteed access to prime markets in the United States."
Enbridge's proposed Bakken Expansion Program includes several separate yet complementary projects. When completed, this program will provide another 145,000 barrels per day (bpd) of incremental pipeline capacity from new receipt locations in the Bakken and Three Forks formations in North Dakota to interconnections with other existing Enbridge systems serving a broad number of refineries in North America.
Enbridge has sufficient binding commitments to proceed with the Beaver Lodge Loop Project and the Enbridge Bakken Pipeline Projects (U.S. and Canada). Through the open season, shippers will have the opportunity to secure firm capacity on these two projects as well as commit to capacity on the SORTI and Dunn Projects. Details on the projects are available in the attached backgrounder and at www.enbridge.com.
The binding Open Season begins August 26, 2010, and closes at 5 p.m. MT on October 29, 2010.
More information about the binding Open Season and the Enbridge Bakken Expansion Program is available on the Open Season website at www.enbridge.com or by contacting:
Kelly Wilkins OR Drew Armstrong
Enbridge Pipelines North Dakota LLC Enbridge Pipelines Inc.
2505 16th Street SW, Suite 200 3000-425 1st Street SW
Minot, North Dakota 58701 Calgary, Alberta T2P 3L8
(701) 857-0840 403-231-3904
Enbridge Energy Partners, L.P. owns and operates a diversified portfolio of crude oil and natural gas transportation systems in the United States, including the EPND System. Its principal crude oil system is the largest transporter of growing oil production from western Canada. The system's deliveries to refining centers and connected carriers in the United States account for approximately 12 percent of total U.S. oil imports; while deliveries to Ontario, Canada satisfy approximately 60 percent of refinery demand in that region. The Partnership's natural gas gathering, treating, processing and transmission assets, which are principally located onshore in the active U.S. Mid-Continent and Gulf Coast area, deliver approximately 2 billion cubic feet of natural gas daily.
Enbridge Energy Management, L.L.C. manages the business and affairs of the Partnership and its sole asset is an approximate 14 percent interest in the Partnership. Enbridge Energy Company, Inc., an indirect wholly owned subsidiary of Enbridge Inc. of Calgary, Alberta, is the general partner and holds an approximate 27 percent interest in the Partnership.
Enbridge Income Fund is an unincorporated, open-ended trust created to provide a stable and sustainable flow of distributable cash to unitholders. The Fund is a premier income fund in Canada with a low-risk profile focused on energy infrastructure assets. It owns a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in Enbridge Pipelines (Saskatchewan) Inc., and a 50% interest in NRGreen Power Limited Partnership, which operates electrical generation facilities using waste heat, and holds interests in three wind power projects in Western Canada.
The Bakken Expansion Program
Enbridge's proposed Bakken Expansion Program includes several separate yet complementary projects that provide 145,000 barrels per day (bpd) of pipeline capacity from new Bakken and Three Forks formation receipt locations located in North Dakota to interconnections with other existing affiliated Enbridge systems serving a broad number of refineries in North America.
The Bakken Expansion Program would supplant the 25,000 bpd capacity provided by the reactivation and reversal of the interconnected Line 26 in the U.S. and EX-02 line in Canada (the "Portal Link"), which will be available by early 2011 subject to regulatory approvals, bringing the total potential incremental capacity of the Portal reversal and the Bakken Expansion Program to 145,000 bpd by Q1 2013. Shippers will have the opportunity to subscribe for either 5 year or 10 year commitments of firm access to the new 145,000 bpd of pipeline capacity on Enbridge systems operating in the Williston Basin.
Enbridge's Bakken Expansion Program includes the following projects:
1. Enbridge North Dakota Bakken Projects:
-- The Beaver Lodge Loop Project: A new 12- or 16-inch diameter
pipeline system with tankage and new pump stations from Enbridge
Pipelines (North Dakota) LLC's ("North Dakota System") existing
Beaver Lodge Station near Tioga, North Dakota, to Berthold, North
Dakota, that will increase the capacity along the 45-mile segment to
approximately 315,000 bpd by Q1 2013. The pipeline project will be
undertaken by Enbridge Pipelines (North Dakota) LLC a subsidiary of
Enbridge Energy Partners (EEP) and will parallel the existing
Enbridge North Dakota System.
-- SORTI & Dunn Projects: Construction of a new 8" / 10" pipeline
system owned by Enbridge Pipelines (North Dakota LLC starting
approximately 45 miles south of Beaver Lodge Station. Two new
truck facilities will be constructed: both Keene Station located
near Keene, North Dakota and Croff Station, located near the
Dunn/McKenzie County border, will provide shippers with the
opportunity to subscribe for either 5 year or 10 year commitments
of firm access on the new approximately 100,000 bpd of pipeline
capacity into Beaver Lodge.
2. Enbridge Bakken Pipeline Projects (U.S. and Canada): Expansion of Line
26/EX-02, including added facilities in North Dakota, Saskatchewan and
Manitoba, including the following:
-- Expansion of the U.S. portion of the Portal Link ("Line 26") by EEP,
including construction of two new pumping stations and enhancements
of the pipeline north of Berthold. Extension of the Canadian portion
of the Portal Link (Line "EX-02") by Enbridge Income Fund (ENF) with
construction of a new 75-mile, 16-inch diameter pipeline from
Steelman, Saskatchewan to the Enbridge terminal at Cromer, Manitoba,
expected to be in-service by Q1 2013. Subject to regulatory
approvals, Line EX-02 and the new extension to Cromer will be
acquired and undertaken by Enbridge Bakken Pipeline Limited
Partnership, a newly formed subsidiary of ENF.
These expansion projects will provide 145,000 bpd of capacity between Berthold, North Dakota, and Cromer, Manitoba and give shippers an opportunity to have long-term contracts for capacity between these two points.